Following the Hope-Simpson report and
based on its recommendations the British responded with the Passfield White Paper
of 1930, which was the first attempt to limit Jewish immigration to Palestine. The Passfield White Paper evoked
considerable opposition from the Zionist movement and was rescinded effectively in a letter issued to Haim Weizmann by
PM Ramsay Macdonald. The letter was read by the PM in the House of Commons and reprinted in the Hansard. Macdonald
did not rescind the Passfield White Paper. He simply denied that it had been the intention of the government to stop
immigration, and in fact, in subsequent years, Jewish immigration to Palestine increased significantly.

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The MacDonald Letter

13 February 1931

Dear Dr. Weizmann:

In order to remove certain misconceptions and misunderstandings which have
arisen as to the policy of his Majesty’s Government with regard to Palestine, as set forth in the White Paper of
October, 1930, and which were the subject of a debate in the House of Commons on Nov. 17, and also to meet certain
criticisms put forward by the Jewish Agency, I have pleasure in forwarding you the following statement of our position,
which will fall to be read as the authoritative interpretation of the White Paper on the matters with which this letter
deals.

It has been said that the policy of his Majesty’s Government involves a serious
departure from the obligations of the mandate as hitherto understood; that it misconceives the mandatory obligations,
and that it foreshadows a policy which is inconsistent with the obligations of the mandatory to the Jewish people.

His Majesty’s Government did not regard it as necessary to quote in extenso the
declarations of policy which have been previously made, but attention is drawn to the fact that, not only does the White
Paper of 1930 refer to and endorse the White Paper of 1922, which has been accepted by the Jewish Agency, but it
recognizes that the undertaking of the mandate is an undertaking to the Jewish people and not only to the Jewish
population of Palestine. The White Paper places in the foreground of its statement my speech in the House of Commons on
the 3rd of April, 1930, in which I announced, in words that could not have been made more plain, that it was
the intention of his Majesty’s Government to continue to administer Palestine in accordance with the terms of the
mandate as approved by the Council of the League of Nations. That position has been reaffirmed and again made plain by
my speech in the House of Commons on the 17th of November. In my speech on the 3rd of April, I
used the following language:

His Majesty’s Government will continue to administer Palestine in accordance with
the terms of the mandate as approved by the Council of the League of Nations. This is an international obligation from
which there can be no question of receding.

Under the terms of the mandate his Majesty’s Government are responsible for promoting
the establishment of a national home for the Jewish people, it being clearly understood that nothing shall be done which
might prejudice the civil and religious rights of existing non-Jewish communities in Palestine or the rights and
political status enjoyed by Jews in any other country.

A double undertaking is involved, to the Jewish people on the one hand and to the
non-Jewish population of Palestine on the other; and it is the firm resolve of his Majesty’s Government to give effect,
in equal measure, to both parts of the declaration and to do equal justice to all sections of the population of
Palestine. That is the duty from which they will not shrink and to discharge of which they will apply all the resources
at their command.

That declaration is in conformity not only with the articles but also with the preamble
of the mandate, which is hereby explicitly reaffirmed.

In carrying out the policy of the mandate the mandatory cannot ignore the existence of
the differing interests and viewpoints. These, indeed, are not in themselves irreconcilable, but they can only be
reconciled if there is a proper realization that the full solution of the problem depends upon an understanding between
the Jews and the Arabs. Until that is reached, considerations of balance must inevitably enter into the definition of
policy.

A good deal of criticism has been directed to the White Paper upon the assertion that
it contains injurious allegations against the Jewish people and Jewish labor organizations. Any such intention on the
part of his Majesty’s Government is expressly disavowed. It is recognized that the Jewish Agency have all along given
willing cooperation in carrying out the policy of the mandate and that the constructive work done by the Jewish people
in Palestine has had beneficial effects on the development and well-being of the country as a whole. His Majesty’s
Government also recognizes the value of the services of labor and trades union organizations in Palestine, to which they
desire to give every encouragement.

A question has arisen as to the meaning to be attached to the words “safeguarding the
civil and religious rights of all inhabitants of Palestine irrespective of race and religion” occurring in Article II,
and the words “insuring that the rights and position of other sections of the population are not prejudiced” occurring
in Article VI of the mandate. The words “safeguarding the civil and religious rights” occurring in Article II cannot be
read as meaning that the civil and religious rights of individual citizens are unalterable. In the case of Suleiman
Murra, to which reference has been made, the Privy Council, in construing these words of Article II said “It does not
mean … that all the civil rights of every inhabitant of Palestine which existed at the date of the mandate are to remain
unaltered throughout its duration; for if that were to be a condition of the mandatory jurisdiction, no effective
legislation would be possible.” The words, accordingly, must be read in another sense, and the key to the true purpose
and meaning of the sentence is to be found in the concluding words of the article, “irrespective of race and religion.”
These words indicate that in respect of civil and religious rights the mandatory is not to discriminate between persons
on the ground of religion or race, and this protective provision applies equally to Jews, Arabs and all sections of the
population.

The words “rights and position of other sections of the population,” occurring in
Article VI, plainly refer to the non-Jewish community. These rights and position are not TO BE prejudiced; that is, are
not to be impaired or made worse. The effect of the policy of immigration and settlement on the economic position of the
non-Jewish community cannot be excluded from consideration. But the words are not to be read as implying that existing
economic conditions in Palestine should be crystallized. On the contrary, the obligation to facilitate Jewish
immigration and to encourage close settlement by Jews on the land remains a positive obligation of the mandate and it
can be fulfilled without prejudice to the rights and position of other sections of the population of Palestine.

We may proceed to the contention that the mandate has been interpreted in a manner
highly prejudicial to Jewish interests in the vital matters of land settlement and immigration. It has been said that
the policy of the White Paper would place an embargo on immigration and would suspend, if not indeed terminate, the
close settlement of the Jews on the land, which is a primary purpose of the mandate. In support of this contention
particular stress has been laid upon the passage referring to State lands in the White Paper, which says that “it would
not be possible to make available for Jewish settlement in view of their actual occupation by Arab cultivation and of
the importance of making available suitable land on which to place the Arab cultivators who are now landless.”

The language of this passage needs to be read in the light of the policy as a whole. It
is desirable to make it clear that the landless Arabs, to whom it was intended to refer in the passage quoted, were such
Arabs as can be shown to have been displaced from the lands which they occupied in consequence of the land passing into
Jewish hands, and who have not obtained other holdings on which they establish themselves, or other equally satisfactory
occupation. The number of such displaced Arabs must be a matter for careful inquiry. IT is to landless Arabs within this
category that his Majesty’s Government feels itself under an obligation to facilitate their settlement upon the land.
The recognition of this obligation in no way detracts from the larger purposes of development which his Majesty’s
Government regards as the most effectual means of furthering the establishment of a national home for the Jews …

Further, the statement of policy of his Majesty’s Government did not imply a
prohibition of acquisition of additional lands by Jews. It contains no such prohibition, nor is any such intended. What
it does contemplate is such temporary control of land disposition and transfers as may be necessary not to impair the
harmony and effectiveness of the scheme of land settlement to be undertaken. His Majesty’s Government feels bound to
point out that it alone of the governments which have been responsible for the administration of Palestine since the
acceptance of the mandate has declared its definite intention to initiate an active policy of development, which it is
believed will result in a substantial and lasting benefit to both Jews and Arabs.

Cognate to this question is the control of immigration. It must first of all be pointed
out that such control is not in any sense a departure from previous policy. From 1920 onward, when the original
immigration ordinance came into force, regulations for the control of immigration have been issued from time to time,
directed to prevent illicit entry and to define and facilitate authorized entry. The right of regulation has at no time
been challenged.

But the intention of his Majesty’s Government appears to have been represented as being
that “no further immigration of Jews is to be permitted as long as it might prevent any Arab from obtaining employment.”
His Majesty’s Government never proposed to pursue such a policy. They were concerned to state that, in the regulation of
Jewish immigration, the following principles should apply: viz., that “it is essential to insure that the immigrants
should not be burden on the people of Palestine as a whole, and that they should not deprive any section of the present
population of their employment.” (White Paper 1922.)

In one aspect, his Majesty’s Government have to be mindful of their obligations to
facilitate Jewish immigration under suitable conditions, and to encourage close settlement by Jews on the land; in the
other aspect, they have to be equally mindful of their duty to insure that no prejudice results to the rights and
position of the non-Jewish community. It is because of this apparent conflict of obligation that his Majesty’s
Government have felt bound to emphasize the necessity of the proper application of the absorptive principle.

That principle is vital to any scheme of development, the primary purpose of which must
be the settlement both of Jews and of displaced Arabs on the land. It is for that reason that his Majesty’s Government
have insisted, and are compelled to insist, that government immigration regulations must be properly applied. The
considerations relevant to the limits of absorptive capacity are purely economic considerations.

His Majesty’s Government did not prescribe and do not contemplate any stoppage or
prohibition of Jewish immigration in any of its categories. The practice of sanctioning a labor schedule of wage-earning
immigrants will continue. In each case consideration will be given to anticipated labor requirements for works which,
being dependent upon Jewish or mainly Jewish capital, would not be or would not have been undertaken unless Jewish labor
was available. With regard to public and municipal works failing to be financed out of public funds, the claim of Jewish
labor to a due share of the employment available, taking into account Jewish contributions to public revenue, shall be
taken into consideration. As regards others kinds of employment, it will be necessary in each case to take into account
the factors bearing upon the demand for labor, including the factor of unemployment among both the Jews and the Arabs.

Immigrants with prospects of employment other than employment of a purely ephemeral
character will not be excluded on the sole ground that the employment cannot be guaranteed to be of unlimited duration.

In determining the extent to which immigration at any time may be permitted it is
necessary also to have regard to the declared policy of the Jewish Agency to the effect that “in all the works or
undertakings carried out or furthered by the Agency it shall be deemed to be a matter of principle that Jewish labor
shall be employed.” His Majesty’s Government do not in any way challenge the right of the Agency to formulate or approve
and endorse this policy. The principle of preferential, and indeed exclusive, employment of Jewish labor by Jewish
organizations is a principle which the Jewish Agency are entitled to affirm. But it must be pointed out that if in
consequence of this policy Arab labor is displaced or existing unemployment becomes aggravated, that is a factor in the
situation to which the mandatory is bound to have regard.

His Majesty’s Government desire to say, finally, as they have repeatedly and
unequivocally affirmed, that the obligations imposed upon the mandatory by its acceptance of the mandate are solemn
international obligations from which there is not now, nor has there been at any time, an intention to depart. To the
tasks imposed by the mandate, his Majesty’s Government have set their hand, and they will not withdraw it. But if their
efforts are to be successful, there is need for cooperation, confidence, readiness on all sides to appreciate the
difficulties and complexities of the problem, and, above all, there must be a full and unqualified recognition that no
solution can be satisfactory or permanent which is not based upon justice, both to the Jewish people and to the
non-Jewish communities of Palestine.